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There are three stages for foreclosure home for sale, within which foreclosure homes are in discounted price. Thus, the homebuyers and the investors can get real bargains! Perhaps you are wondering what the three stages of foreclosure home sale are. Well, I am talking about pre-foreclosure, auction and real estate-owned property.

Let us see what each of these stages consists of, so that anyone can clearly see how the whole process goes.

The first stage of foreclosure is pre-foreclosure. In terms of law, this is the first action taken by the lender and where the pre-foreclosure home owner is given a period to respond to the lender whether he will manage to pay back the debts or get a buyer. The buyers or investors can directly deal with the owner to get a better price. This is the reason why foreclosure home for sale in this initial stage is the best for any person interested in doing such a deal. We are in fact helping the owners who successfully sell their foreclosure home in this stage, so that it will not harm their credit history.

When it comes to speaking about foreclosure home for sale in auction, one should know that this can only happen if the owner failed to settle the debts within a limited period of time. The foreclosure home will be opened for sale, which means that it is being bided in the country court house. The highest bid will get the foreclosure home. So, in order to buy a foreclosure home, we will need to compete with professional investors or even bankers! In the auction, foreclosure homes for sale are below retailed price. Investors usually gain large amounts of money just by buying foreclosure homes and then selling it again at a higher price.

Should there be no buyers on the foreclosure home during auction, the property will be taken back by the lender. This is what we call the third stage of foreclosure. Until then, the foreclosure home is directly put for sale by the lender or bank, which is Real Estate Owned. Many advantages can arise from buying foreclosure homes from the lenders or from the banks. The procedure is simpler and there will be less red-tape. And another good thing: there will probably be no tenants to evict!
So, given all these advantages, you should try this too!

About the Author: Mortgage Short Sale ; Mortgage Default - Integrated Loss Mitigation Group (ILMG), a REV Holdings Company.